M100 Community Association Management
1. Each of the c. A requirement of community association ownership is
following are serving on the board of directors.
key characteris-
tics of commu- This is one of the three key characteristics common to
nity associations all community associations. Members of an association
EXCEPT: are not legally required to serve on the board of directors;
a. Mandatory however, the overall success on the community is depen-
lien-based eco- dent upon the members' involvement its affairs.
nomic charges
or assessments
are levied on
each owner in or-
der to operate
and maintain the
community asso-
ciation.
b. Membership
in the communi-
ty association is
mandatory and
automatic for all
owners.
c. A requirement
of community as-
sociation owner-
ship is serving
on the board of
directors.
d. Certain doc-
uments bind all
owners to be
governed by the
community asso-
ciation.
2. True or False. True
The primary pur-
pose of a com- Providing for the governance, business, and communal
munity associa- aspects of the association is achieved by administering,
, M100 Community Association Management
tion is to provide maintaining, and enhancing a residential real estate de-
for the gover- velopment, and through the establishment of a system of
nance, business, property rights, binding covenants and restrictions, and
and communal rules and regulations.
aspects of the
association.
3. Each of the fol- b. Townhouse
lowing are ba-
sic types of res- While many community associations are indeed town-
idential commu- house communities, not all such developments are nec-
nity associations essarily associations. A community association is defined
EXCEPT: in terms of ownership rights—not architectural style.
a. Planned com-
munity
b. Townhouse
c. Cooperative
d. Condominium
4. Adoption of the d. general resolution
annual budget is
an example of General resolutions involve routine events such as adop-
which of the fol- tion of the annual budget.
lowing type of
resolution?
a. policy resolu-
tion
b. administrative
resolution
c. special resolu-
tion
d. general resolu-
tion
5. True or false. True
The purpose of a
community asso- The governing documents define the rights and obliga-
ciation's govern- tions of both the community association and its owners,
ing documents is create a binding relationship between each owner and the
, M100 Community Association Management
to provide for community association, and establish the mechanisms
the legal struc- for governing and funding the community association's
ture and opera- operations.
tion of the com-
munity.
6. True or false. Ac- False
cording to the
general hierar- As a general rule, documents lower in the hierarchy of
chy of author- authority cannot conflict with or change the terms of those
ity for govern- above them. The recorded map, plat, or plan is above
ing documents, the bylaws in the hierarchy, and therefore would prevail
the bylaws would in such a conflict.
control in a con-
flict with the
recorded map,
plat, or plan.
7. Complete the fol- c. specific
lowing sentence:
A __________ A specific state statute is one that applies only to one
state statute is or more types of community associations. For example,
one that applies most states have a condominium act which provides for
only to one or the establishment and operation of condominiums as le-
more types of gal entities. These acts vary in terms of their complexi-
community asso- ty—the simplest ones just allow for the creation of condo-
ciations. miniums.
a. general
b. complex
c. specific
d. uniform
8. True or false. A True
proprietary lease
or occupancy In a cooperative, the proprietary lease or occupancy
agreement in a agreement serves generally the same purpose as the
cooperative de- declaration, CC&R, or master deed in other community
fines the member associations. Among other things, the proprietary lease
or stockholder's or occupancy agreement identifies the premises that the
, M100 Community Association Management
rights and oblig- stockholder is permitted to occupy exclusively, defines
ations in relation the term of the lease and the rent that is payable by the
to the living unit. stockholder, and establishes the powers and obligations
of the cooperative's board of directors, including assess-
ment rights.
9. Complete the fol- d. articles of incorporation
lowing sentence:
The __________ A community association's corporate structure is estab-
bring the com- lished when a developer sets up the association. The de-
munity associa- veloper files articles of incorporation—sometimes called
tion into exis- a corporate charter—with the appropriate state corpora-
tence, define its tion agency.
basic purposes
and powers, and
indicate whether
stock will be is-
sued.
a. recorded map,
plat, or plan
b. declaration,
CC&Rs, or mas-
ter deed
c. proprietary
lease or oc-
cupancy agree-
ment
d. articles of in-
corporation
10. True or False. False
The public offer-
ing statement is The public offering statement is not a governing docu-
a governing doc- ment; instead, it is simply a disclosure statement that
ument, as it often provides information on the community association to
distributed along prospective buyers.
with the govern-
ing documents.
1. Each of the c. A requirement of community association ownership is
following are serving on the board of directors.
key characteris-
tics of commu- This is one of the three key characteristics common to
nity associations all community associations. Members of an association
EXCEPT: are not legally required to serve on the board of directors;
a. Mandatory however, the overall success on the community is depen-
lien-based eco- dent upon the members' involvement its affairs.
nomic charges
or assessments
are levied on
each owner in or-
der to operate
and maintain the
community asso-
ciation.
b. Membership
in the communi-
ty association is
mandatory and
automatic for all
owners.
c. A requirement
of community as-
sociation owner-
ship is serving
on the board of
directors.
d. Certain doc-
uments bind all
owners to be
governed by the
community asso-
ciation.
2. True or False. True
The primary pur-
pose of a com- Providing for the governance, business, and communal
munity associa- aspects of the association is achieved by administering,
, M100 Community Association Management
tion is to provide maintaining, and enhancing a residential real estate de-
for the gover- velopment, and through the establishment of a system of
nance, business, property rights, binding covenants and restrictions, and
and communal rules and regulations.
aspects of the
association.
3. Each of the fol- b. Townhouse
lowing are ba-
sic types of res- While many community associations are indeed town-
idential commu- house communities, not all such developments are nec-
nity associations essarily associations. A community association is defined
EXCEPT: in terms of ownership rights—not architectural style.
a. Planned com-
munity
b. Townhouse
c. Cooperative
d. Condominium
4. Adoption of the d. general resolution
annual budget is
an example of General resolutions involve routine events such as adop-
which of the fol- tion of the annual budget.
lowing type of
resolution?
a. policy resolu-
tion
b. administrative
resolution
c. special resolu-
tion
d. general resolu-
tion
5. True or false. True
The purpose of a
community asso- The governing documents define the rights and obliga-
ciation's govern- tions of both the community association and its owners,
ing documents is create a binding relationship between each owner and the
, M100 Community Association Management
to provide for community association, and establish the mechanisms
the legal struc- for governing and funding the community association's
ture and opera- operations.
tion of the com-
munity.
6. True or false. Ac- False
cording to the
general hierar- As a general rule, documents lower in the hierarchy of
chy of author- authority cannot conflict with or change the terms of those
ity for govern- above them. The recorded map, plat, or plan is above
ing documents, the bylaws in the hierarchy, and therefore would prevail
the bylaws would in such a conflict.
control in a con-
flict with the
recorded map,
plat, or plan.
7. Complete the fol- c. specific
lowing sentence:
A __________ A specific state statute is one that applies only to one
state statute is or more types of community associations. For example,
one that applies most states have a condominium act which provides for
only to one or the establishment and operation of condominiums as le-
more types of gal entities. These acts vary in terms of their complexi-
community asso- ty—the simplest ones just allow for the creation of condo-
ciations. miniums.
a. general
b. complex
c. specific
d. uniform
8. True or false. A True
proprietary lease
or occupancy In a cooperative, the proprietary lease or occupancy
agreement in a agreement serves generally the same purpose as the
cooperative de- declaration, CC&R, or master deed in other community
fines the member associations. Among other things, the proprietary lease
or stockholder's or occupancy agreement identifies the premises that the
, M100 Community Association Management
rights and oblig- stockholder is permitted to occupy exclusively, defines
ations in relation the term of the lease and the rent that is payable by the
to the living unit. stockholder, and establishes the powers and obligations
of the cooperative's board of directors, including assess-
ment rights.
9. Complete the fol- d. articles of incorporation
lowing sentence:
The __________ A community association's corporate structure is estab-
bring the com- lished when a developer sets up the association. The de-
munity associa- veloper files articles of incorporation—sometimes called
tion into exis- a corporate charter—with the appropriate state corpora-
tence, define its tion agency.
basic purposes
and powers, and
indicate whether
stock will be is-
sued.
a. recorded map,
plat, or plan
b. declaration,
CC&Rs, or mas-
ter deed
c. proprietary
lease or oc-
cupancy agree-
ment
d. articles of in-
corporation
10. True or False. False
The public offer-
ing statement is The public offering statement is not a governing docu-
a governing doc- ment; instead, it is simply a disclosure statement that
ument, as it often provides information on the community association to
distributed along prospective buyers.
with the govern-
ing documents.
